Friday, 7 September 2012

Reserve Bank of India "advises" against gold investment

The Times of India reports,
MUMBAI: On a day gold prices touched a new high, the Reserve Bank of India (RBI) urged the public against choosing gold as an asset for savings or investment. "Because interest rates are very low, people are investing in gold. But the poor should never invest in gold for whenever they have purchased gold, it either lands up in the temple or in the hands of the moneylender or, at the most, it may be given away during a daughter's marriage," said K C Chakrabarty, deputy governor, RBI.
The deputy governor spoke out against investing in gold in July this year as well.

With consumer prices increasing 9.86% in July and forecasts for the year ending 31 March next year increasing from 6.5% to 7.0% (see here) Mr Chakrabarty's "investment advise" probably has a slightly different agenda (of course, assuming he's not simply a bad investor).


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